When you cancel an invoice, the system posts a credit memo for the data in the invoice. The postings are made in accordance with the credit memo posting logic. Other terms
This means that the postings in the invoice are not necessarily reversed. This is especially the case when an invoice is to be cancelled for a purchase order for which several invoices have already been posted.
Similarly, when you cancel a credit memo, the postings made in the credit memo are not necessarily reversed.
The following examples illustrate two cases in which a cancellation results in postings different to those in the invoice.
Purchase order for 100 pieces à $10 / piece.
Goods receipt for 50 pieces
Invoice 1: 50 pieces à $ 10 = $ 500
Invoice 2: 50 pieces à $ 11 = $ 550
If you cancel the first invoice:
GR IR1 IR2 Cancel IR1
Stock account 500 +
GR/IR clearing account 500 - 500 + 550 + 550 -
Vendor account 500 - 550 - 500 +
Price difference account 50 +
Purchase order for 100 pieces à $ 10 / piece.
Invoice 1: 10 pieces à $ 10 = $ 100
Invoice 2: 10 pieces à $ 20 = $ 200
Reversal/credit memo for invoice 2
IR1 IR2 Cancel IR2
GR/IR clearing account 100 + 200 + 150 -
Vendor account 100 - 200 - 200 +
Price difference account 50 -
MRHG, MR08, MR8M, MR11SHOW Solution
Not an error